Binance caught in crossfire as Nigeria cracks down on crypto
TLDR
- Two senior executives at Binance detained in Nigeria amidst crackdown on cryptocurrency exchanges.
- Executives detained upon arrival, passports seized by national security adviser's office.
- Crackdown follows recent decision banning cryptocurrency trading websites in Nigeria.
According to sources familiar with the matter cited by the Financial Times, two senior executives at Binance have been detained in Nigeria as part of the country's crackdown on cryptocurrency exchanges.
These executives traveled to Nigeria following the recent decision by the country to ban several cryptocurrency trading websites. However, upon arrival, they were detained by the office of the country's national security adviser, and their passports were seized.
This crackdown comes after a period during which several cryptocurrency websites gained popularity as preferred platforms for trading the Nigerian currency, which has been plagued by chronic dollar shortages. The official exchange rate of the naira has been hovering close to the parallel market level following its devaluation last month, marking the currency's second adjustment in less than a year.
Key Takeaways
Africa's largest economy has been grappling with severe dollar shortages, which have driven its currency to unprecedented lows. This situation arose after foreign investors withdrew following a previous collapse in oil prices and the implementation of capital controls in 2015. In response to the ongoing crypto crackdown in the country, Nigerian authorities have reportedly imposed a hefty $10 billion fine on Binance, the global cryptocurrency exchange. This development was confirmed by a presidential aide speaking to the BBC on Friday morning.
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